Comment Text:
10-002
COMMENT
CL-01536
From:
Sent:
To:
Subject:
[email protected]
Wednesday, April
14, 2010 2:19 PM
secretary
Proposed Speculative Position Limits on Energy
Scott Nuckols
9356 Comanche Ridge Drive
Fort Worth, TX 76131-3102
April 14, 2010
David Stawick
Secretary, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
This topic has been such an issue for our industry and our personal lives
that it has invaded my sleep. Just a few nights ago, I dreamt that I was
dealing with prices at the pump varying from $8 to $10 a gallon. As you
can imagine, this dream woke me up. The fluctuations in fuel prices in
recent years have not been matched with increases in my means as they are
not
related to natural inflation. In fact, I am going on year two of
no
increase in compensation at all. When we were paying just over $4 at the
pump, serious doubts entered my mind as to by ability to sustain a career
in aviation or as a commuter. Facing another run up in prices due to
speculation, I'm sure, was the cause of my unrest a few nights ago.
In the last year, we have relocated to another state to maintain
employment in my industry. There are forces at play that are causing
migrations of people, skilled and educated Americans, to survive. That
forced migration may be an indication that some folks have just a little
too
much freedom causing others undue expense.
The following is a form letter that refects my postion on the CFTC's
actions. I am just one of 70,000 plus employees of American Airlines
impacted directly by fuel price issue...
I am writing in support of the CFTC's Proposed Federal Speculative
Position Limits that will reestablish speculative position limits on maj or
energy commodities. This rule will provide stability to the marketplace
and help prevent future price bubbles. The CFTC must quickly approve a
strong rule to protect America's struggling economy. Wall Street's
speculative trading in oil not only hurts the economy, but hurts every
American who pays excessive prices at the pump, for groceries, home
heating oil and everything related to transportation.
Our tax dollars were used to bail out large Wall Street firms when they
were on the brink of bankruptcy. It is these same institutions that10-002
COMMENT
CL-01536
pushed the price of gasoline well past $4 per gallon in 2008 by gambling
on oil and continue to profit at every American's expense.
Rampant oil speculation by large Wall Street trading firms has resulted in
extreme volatility in energy markets and unwarranted price spikes in
recent years. Given that supplies are at record highs and demand remains
weak, fundamentals cannot explain recent price hikes and destructive price
swings. Unless the CFTC adopts the proposed rule, markets will continue to
fluctuate wildly.
Position limits existed in energy markets until 2001 and currently apply
to agricultural commodities. CFTC should use its existing experience to
regulate position limits of speculators and prevent excessive
concentration in the energy markets, while ensuring that exemptions to
these limits afforded to real physical players such as fuel cooperatives,
public utilities, truckers and airlines are not exploited by big banks and
billionaire investors.
Energy consumers desperately need stability in the marketplace. I
encourage the CFTC to adopt the Proposed Federal Speculative Position
Limits before volatile fuel prices further harm the country's already
weakened economy.
Sincerely,
Scott Nuckols
817-2224-1034
